Regulatory Alerts2026-05-27
Added · Updated
SFC Guidance on VA Financing, Shared Order Books, and Client VA Withdrawals
The Securities and Futures Commission permits licensed virtual asset brokers to offer financing for virtual asset dealing using specified securities and cryptocurrency collateral, subject to strict credit risk assessments and a minimum 60% haircut on eligible collateral. The regulator establishes expected standards for brokers participating in shared order books, requiring thorough risk assessments and explicit client consent for retail access to cross-border liquidity. Additionally, the circular mandates enhanced cybersecurity and operational safeguards for brokers facilitating client virtual asset withdrawals to mitigate risks of fraud and unauthorized transfers.